Lowell Resources Fund to Buy Back Up to 3.4 Million Units Over 12 Months

Strategic Capital Management

Lowell Resources Fund (ASX – LRT) has unveiled a significant capital management initiative with the approval of an on-market unit buy-back program. Starting around 18 August 2025, the fund plans to repurchase up to 10% of its fully paid ordinary units over the course of 12 months. This move aligns with the fund’s stated objectives to enhance unitholder returns and improve capital efficiency.

Funding and Pricing Discipline

The buy-back will be financed entirely from existing cash reserves, ensuring that the fund’s operational capacity and ability to pursue future investments remain intact. Importantly, the buy-back price will not exceed 5% above the volume weighted average price (VWAP) calculated over the five trading days prior to each purchase, reflecting a disciplined approach to capital deployment.

Regulatory Compliance and Transparency

Lowell Resources Fund’s buy-back complies with the Corporations Act 2001 and ASX Listing Rules, notably falling within the '10/12 limit' which exempts it from requiring unitholder approval. The fund has committed to daily disclosures of units bought back, providing transparency and allowing investors to monitor the program’s progress closely.

Market Implications and Outlook

This buy-back signals management’s confidence in the fund’s balance sheet strength and future growth prospects. By reducing the number of units on issue, the fund aims to increase earnings per unit and potentially support the unit price. However, the pace and scale of repurchases will depend on market conditions and unit price movements, introducing an element of uncertainty regarding the program’s ultimate impact.

Investors will be watching closely to see how this buy-back influences liquidity and whether it precedes further strategic moves by Lowell Resources Fund.